Non-QM Portfolio Loans for Non-Traditional Borrowers

Non-QM portfolio loans can provide flexible mortgage solutions when traditional guidelines do not reflect a borrower’s full financial picture. These programs may offer alternative ways to evaluate income, assets, property type and overall financial strength. For background on the distinction between QM and Non-QM financing, review the Consumer Financial Protection Bureau’s explanation of qualified mortgages.

Because we work with multiple Non-QM investors, we can compare different programs to identify an option suited to the borrower and property.

Alternative Income Documentation

Available options may include:

• Bank-statement loan programs
• 1099 income programs
• Asset-based income qualification
• DSCR loans for real-estate investors
• Alternative-documentation programs
• Options for newly self-employed borrowers
• Solutions for other complicated income situations

Financing for Unique Properties

Possible property types include:

• Non-warrantable condominiums
• Condotels
• High-acreage properties
• Hobby farms
• Equestrian properties
• Two-to-four-unit properties
• Other properties with unique characteristics

Property eligibility and financing terms vary by investor and are reviewed individually.

Additional Non-QM Solutions

• Foreign-national borrowers
• Eligible properties closing in an LLC
• Cross-collateral loans involving multiple properties
• Standalone bridge loans
• Bridge financing involving a simultaneous closing
• Primary residences, second homes and investment properties
• Jumbo and other high-balance financing needs

Down Payment and Reserve Requirements

Non-QM loan limits, down-payment requirements and reserve requirements vary considerably by program, property and borrower profile. Many Non-QM programs require a larger down payment than traditional financing. Borrowers may also need to document reserves remaining after closing.

Finding the Right Program

Non-QM portfolio loans are not a single loan program. Each investor establishes its own guidelines, which makes it important to review the complete financial and property scenario before recommending a solution.

The Chris Jordan Mortgage Team can evaluate your circumstances, compare available programs and explain the potential advantages, costs and documentation requirements.

Loan programs and guidelines are subject to change. All financing is subject to application, documentation, property eligibility and underwriting approval. Not all borrowers or properties will qualify.